The Group confirms its guidance for the period 2020-21 despite the impact of Covid-19
MASMOVIL Group repeats its historical record in terms of customer acquisition with 373,000 new adds and obtained a net income of 22M€ in the first quarter of the year
- EBITDA increases to 134M€ (+27%) and the margin improves significantly reaching 30%.
- Service revenues reached 401M€ (+20%) and total revenues increased by 16% to 445M€.
- Total customer base of 9.2M. 7.6M mobile and 1.6M broadband subscribers.
- The Group reaches 24.4M FTTH households, practically all of the Spanish Building Units (“BUs”).
- MASMOVIL Group reinforces its commitment to society during the Covid-19 crisis, keeping Spain connected and carrying on multiple solidarity initiatives.
Madrid, May 14th, 2020.- MASMOVIL Group has presented today its results for the first quarter of the year in which the Company continues with strong performance in customer acquisition despite the restrictions imposed by Covid-19 and significantly increases both its service revenues and its profitability.
As a result of the good performance of the Group, MASMOVIL obtained a net income of 22M€ in the first quarter of the year, similar to the one obtained during the same quarter of last year. The adjusted net income has reached 33M€.
Furthermore, despite the impact of Covid-19, which MASMOVIL considers less than expected, and taking into account the solid first quarter and the trend observed during the second quarter, commercial growth plans will not be materially affected by Covid19 and it has reiterated its confidence in achieving the guidance for the period 2020/21. Specifically, it confirms an EBITDA target of 570M€ for 2020 and 670-700M€ for 2021.
On the other hand, during this crisis MASMOVIL has made an extraordinary effort to maintain Spain connected and its networks have been the ones that have offered the best performance during the Covid-19 crisis according to different studies, providing a very satisfactory service and without any relevant incidents, despite having registered growths in the use of its services, which have doubled at sometimes compared to a normal situation.
Also, and reinforcing its commitment to society, it has contributed to the collective effort to overcome this pandemic by carrying out multiple solidarity initiatives and offering free services for customers to make the confinement at their homes more bearable.
A first quarter of the year with great growth in its financial parameters
MASMOVIL continues to increase the Group's profitability and has obtained an EBITDA in the first quarter of 134M€, +27% (+29M€) than the same period of last year. The recurring EBITDA margin has improved significantly to 30%, compared to 27% in the first quarter of last year.
Total revenues during the first quarter were 445M€, +16% versus same period last year. Service revenues increased significantly, reaching 401M€, up 20% than the same period of last year.
"We are very pleased with the extraordinary commercial and financial results obtained during the first quarter of the year despite the restrictions imposed by Covid-19, which demonstrates our ability to continue growing in a sustained and profitable manner." said Meinrad Spenger, CEO of MASMOVIL Group.
“Furthermore, I am especially proud of the response of our Group to the Covid-19 crisis, generating a positive impact on our Society through different solidarity initiatives and the good performance of our networks, keeping Spain connected in a very satisfactory way”, he added.
Commercial results: excellent commercial performance in Q1 with more than 370,000 new adds despite market restrictions
Regarding commercial results, MASMOVIL Group continues to maintain a strong commercial performance and its rapid organic growth, closing the first quarter of the year equaling the best quarter in its history with 373k net adds (+12.3% compared to the same quarter last year), adding 254k postpaid subscribers -record of the last two years- and 119k fixed broadband during the period.
The Company has been acquiring more than 100k fixed broadband adds for ten consecutive quarters, and more than 190k mobile subscribers for 11 consecutive quarters.
By the end of the first quarter, MASMOVIL Group had 9.2M total lines, 16% more than last year, of which 7.6M are mobile (5.9M belong to the postpaid segment, 18% more than last year) and more than 1.6M of fixed broadband, 43% more than the previous year. During the last 12 months, MASMOVIL has acquired close to 500k fixed broadband lines. 88% of the total broadband customer base are fiber optic.
Evolution of mobile and fixed broadband lines
Operator with the fastest network performance during Q1 and the Covid-19 crisis and a very significant increase in its fiber optic footprint reaching 24.4M households
MASMOVIL reached by the end of the first quarter 24.4M households with its fiber offer -of which 13.6M, 56% of the total, with its own fiber or use rights-, 45% more than at the end of the same period last year and practically all of the Spanish Building Units (“BUs”).
Furthermore, according to a study by the prestigious French company nPerf, the MASMOVIL Group fixed and mobile networks are offering the highest download speed during the first quarter of the year and also during the pike days of the crisis, after carrying out more than 22,700 tests on mobile networks and more than 660,000 tests on fixed networks during the first quarter of the year.
During the first quarter of the year, the Group has invested a total of 97M€, of which 22M€ correspond to the development of its fiber network.
MASMOVIL Group solidarity initiatives during Covid-19 and free services for customers
MASMOVIL Group is very aware of the difficult situation that our country is facing, and especially sensitized with its commitment to society during the Covid-19 crisis, therefore, it has joined the collective effort by carrying out multiple solidarity initiatives, among others, which stands out:
- The donation of 1 million FFP2 sanitary masks for the protection of health professionals.
- Donation of 2,400 wireless terminals and routers with voice and data connection for retirement houses, hospitals, and vulnerable collectives throughout the Spanish geography.
- Collaboration of MASMOVIL employees through monetary donations to the "Red Innicia".
- And others related to the dissemination of solidarity initiatives through the Yoigo platform "Pienso Luego Actúo" or participation in "StopCorona", a platform created to develop and publicize new projects and generate synergies that help predict and mitigate the effects of the pandemic.
In addition, MASMOVIL, to make the mandatory lockdown of clients during confinement more bearable and better connected, has made available free entertainment, health, education and technology services to enjoy from their homes, giving free GB, Infinite data and free TV content and extending the validity of its customers' prepaid cards so that they stay connected during this time at home.
Confirms its guidance for 2020/21 despite the impact of Covid-19
Finally, according the Company's good results during the first quarter of the year and despite the impact of Covid-19, MASMOVIL Group reiterates its confidence in achieving the following objectives:
- 2020 Adjusted EBITDA € 570-600M; Margin 30-32%; Capex 295M€.
- 2021 Adjusted EBITDA € 670-700M; Margin 32-34%; Capex 255M€.
- 2021 FCFE per share> € 2.
About MASMOVIL Group
MASMOVIL Group is the fourth largest converging telecommunications operator in Spain that provides fixed, mobile and broadband Internet services for residential, business and Wholesale, through its main brands: Yoigo, Pepephone, MASMOVIL, Lebara Hits Mobile and Llamaya.
The group relies on a fiber/ADSL network for broadband and 3G and 4G network for mobile telephony. At present, it has more than 24,4 million fiber households and reaches 18 million homes with ADSL. The companies’ 4G mobile network covers 98,5% of the Spanish population. The Group has 9,2 million customers in Spain.
MASMOVIL Group has been awarded with the prize “Best fiber operator” by ADSLZone 2019 and the “Best fiber operator by the website El Grupo Informático. In addition, it has been named “Revelation Company” in the Business Awards of the Vocento Group.
Additionally, it is the operator with the fastest fiber network in Spain according to a study by the company, nPerf, and the operator with the fastest 3G+4G aggregated mobile network in Spain, according to a study by the company, Tutela.
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Further information
Fernando Castro +34.656.160.378
fernando.castro@masmovil.com